NASDAQ$VLY

Valley National Bancorp · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported a net income with strong loan growth and net interest margin.

Valley National Bancorp reported a net income of $87.3 million, or $0.21 per diluted common share, for the first quarter of 2020. The results reflect strong loan growth and an increase in the net interest margin. The bank dedicated resources to support customers through the CARES Act and Paycheck Protection Program, facilitating $1.6 billion in assistance.

  • Loans increased by $728.9 million, or 9.8% annualized, driven by commercial real estate, commercial and industrial, and residential loan growth.
  • Net interest income on a tax equivalent basis increased to $266.4 million, up $26.8 million from the previous quarter, due to lower funding costs and the Oritani Financial Corp. acquisition.
  • Net interest margin on a tax equivalent basis rose to 3.07%, an 11 basis point increase from the fourth quarter of 2019.
  • The provision for credit losses for loans was $33.9 million, influenced by adverse economic conditions and loan growth.

Headline financials

Total Revenue

$307M

Previous: $326M-6.0%
EPS (adj)

$0.21

Previous: $0.22-4.5%
Efficiency ratio

50.8%

No prior period
Total risk-based capital

11.5%

No prior period
Tier 1 risk-based capital

9.9%

No prior period
Common equity tier 1 capital

9.2%

No prior period
Tier 1 leverage capital

8.2%

No prior period
Capital Expenditures

-$9.24M

Previous: -$3.82M-141.9%
Free Cash Flow

$78M

Previous: $110M-28.7%
Net Income

$87.3M

Previous: $113M-23.0%
Operating Income

$150M

Previous: $188M-20.1%
Gross Profit

$273M

Previous: $318M-14.3%
Cash & Equivalents

$1.01B

Previous: $467M+115.4%
Total Assets

$39.1B

Previous: $32.5B+20.5%
Stock-Based Comp

$3.68M

Previous: $4.03M-8.7%

Revenue & EPS history

Valley National · Revenue · Quarterly

$307M

Q1 2020-6%vs Q1 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Valley National · $45.2B total across 4 segments · Q3 2022

  • Total commercial real estate
    $28.1B
  • Commercial and industrial loans
    $8.7B+2709.1%
  • Residential mortgage
    $5.18B
  • Total consumer loans
    $3.24B

Forward guidance

The document does not contain explicit forward guidance. It expresses management's expectations about programs, products, acquisitions, relationships, opportunities, taxation, technology, market conditions, and economic expectations, including the potential effects of the COVID-19 pandemic.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.2%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+1.6%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+9.3%

Q1 2023

Best reaction

-8.3%

Q1 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.9%+2.8%+2.2%
Q4 2025+3.0%+7.1%+2.8%
Q3 2025+4.3%+10.5%+6.3%
Q1 2025+1.2%+0.5%+0.8%
Q4 2024-0.2%+4.1%-2.7%
Q3 2024+1.6%+5.0%+15.8%
Q2 2024+5.1%+4.7%+13.5%
Q1 2024-6.6%-10.6%-6.1%
Q4 2023-4.3%-3.4%-21.9%
Q3 2023+0.1%+0.4%+13.2%
Q2 2023-1.4%-3.8%-15.0%
Q1 2023+9.3%-14.9%-11.0%
Q4 2022+3.0%+7.0%+5.5%
Q3 2022+3.0%+2.8%+8.4%
Q2 2022+4.1%+4.1%+8.0%
Q1 2022-2.0%-1.8%+4.5%
Q4 2021-5.7%-4.3%-3.4%
Q3 2021-1.2%+3.9%+3.6%
Q2 2021-0.9%-1.4%+1.1%
Q1 2021-1.6%+2.1%+2.4%
Q4 2020-1.7%+0.8%+17.9%
Q3 2020+5.8%-1.0%+20.4%
Q2 2020+3.5%-0.8%-0.4%
Q1 2020-4.6%-8.0%-3.9%
Q4 2019-3.4%+0.0%-14.7%
Q3 2019+0.3%+2.9%+2.1%
Q2 2019+1.2%+1.8%-7.8%
Q1 2019+0.3%+1.3%-1.5%
Q4 2018-2.5%-1.1%+2.0%
Q3 2018+0.3%+5.1%+4.8%
Q2 2018-6.1%-7.8%-5.1%
Q1 2018+3.2%+1.7%+3.9%
Q4 2017+4.7%+2.9%+5.8%
Q3 2017-2.4%-3.7%-5.4%
Q2 2017-5.9%-4.2%-9.1%
Q1 2017+0.4%-0.7%-5.0%
Q4 2016+6.8%+5.7%+9.0%
Q3 2016+1.4%+0.9%+16.7%
Q2 2016-0.8%-1.0%+4.6%
Q1 2016-6.7%
Q4 2015+0.7%
Q3 2015+5.8%
Q2 2015-1.8%
Q1 2015-2.0%
Q4 2014-1.2%
Q3 2014-0.3%
Q2 2014-0.6%
Q1 2014-6.9%
Q4 2013-1.8%
Q3 2013-4.1%
Q2 2013+3.8%
Q1 2013-8.3%
Q4 2012-0.2%
Q3 2012-0.4%
Q2 2012-0.3%
Q1 2012+0.1%
Q4 2011+0.5%
Q4 2008+0.5%
Q3 2011+3.8%
Q2 2011-2.7%
Q1 2010+0.4%
Q1 2011+0.3%
Q4 2010-1.6%
Q3 2010-2.9%
Q3 2009-2.9%
Q4 2009+0.1%
Q2 2010+0.1%
Q2 2009+0.1%

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